Refinance and the Accumulation of Home Equity Wealth

BABC 04-10: Spending financed by home equity extraction helps smooth household consumption and bolster the economy in economic downturns, but may reduce wealth accumulation. We use American Housing Survey (AHS) data to provide cross-sectional, longitudinal and cohort group  analysis of the accumulation of home equity, the change in aggregate leverage, and the likelihood of mortgage refinance for the period of 1985 to 2001…